German bunds suffer despite disappointment in August unemployment; eurozone CPI in focus

The German bunds suffered during European trading session Thursday even as the country’s unemployment data for the month of August disappointed market sentiments. However, investors shall now eye the eurozone’s consumer price inflation (CPI) data for the similar period, scheduled to be released on August 30 by 09:00GMT for further direction in the debt market.

The German 10-year bond yield, which move inversely to its price, jumped 2 basis points to -0.699 percent, the yield on 30-year note surged nearly 4 basis points to -0.234 percent while the yield on short-term 2-year traded nearly steady at -0.889 percent by 09:40GMT.

According to data released by Destatis, the number of people voluntarily out of work in Germany increased by 4,000 to 2.29 million in August, the fourth consecutive month that joblessness failed to reduce after six years of almost continuous decline, while the unemployment rate remained unchanged at 5 percent, near a record low.

A report from Bloomberg stated that "the European Central Bank (ECB) has also called on Germany to use the leeway in its budget, as the nation’s woes threaten to exacerbate economic weakness in the euro zone as whole."

Further, the country’s inflation due later today is forecast to come in at 1.2 percent for August, a slight improvement on July but still feeble enough to drag on the central bank’s goal of just under 2 percent for the currency bloc, the report added.

Meanwhile, the German DAX surged 1.11 percent to trade at 11,831.94 by 09:50GMT.